Agland Inc. comes off challenging year in sales

Agland Inc. heads into its 100th year of business coming off what officials called a challenging year in 2004 that saw a

8 percent decrease in sales and a 6 percent decline in gross revenue.

Mitch Anderson, president and chief executive officer, said that while sales of $74 million represented an 8 percent decline from the previous year, the company was able to reduce expenses by 8 percent, resulting in a $230,000 improvement in local savings. Agland, he said, finished its fiscal year with a positive bottom line by reducing capital outlays.

In addition, the number of employees was reduced by 10 percent by scaling back and through attrition.

The largest member-owned cooperative in the state conducted its annual member meeting last Thursday evening at the Exhibition Building in Island Grove Regional Park. About 350 people attended.

Anderson said Agland met the challenges of record fluctuations in oil prices, fuel costs, and grain, feed and forage stocks, much of that brought on by continued drought and the resulting economic downturn.

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The drought resulted in a reduction of intensive farming practices and low cattle numbers.

On the positive side, the agronomy department was able to hold its own in spite of the continuing drought and a colder winter helped in propane sales.

Feed operations and automotive businesses showed a good performance, while the feed operations finished the year strong.

The company was able to upgrade its accounting system, add a gas pump computer system in its retail stores and install a high-speed Internet system that will service Eaton, Agland’s home base.

Looking ahead to the coming year, Anderson said Agland’s budget calls for sales to be in the same range as the previous year with earnings projected that will return the company to profitable levels.

“Agland employees and the board of directors are among the finest. Because of their honesty, integrity, and hard work, this group of individuals will persevere in these difficult times,” he said.

Bill McKay, chairman of Agland’s board, noted the company’s senior management and employee team are working hard in a time of uncertainty and drought.

“Agland will celebrate 100 years of service to the community, not as a survivor, but as a fighter that has endured the tough times and reaped the rewards,” he said.